To Study Consumer Satisfaction towards Ford Cars in Solapur City

BBA III(SEMVI) SOLAPURUNIVERSITY,SOLAPUR
Prin.K.P.Mangalwedhekar Institute of Management ,Solapur Page 1
CHAPTER-I
INTRODUCTION
INTRODUCTION ABOUT THE STUDY
A market survey is a research technique used to gather consumer preferences and
purchase intent of a company's products and services within a geographical area. Market
surveys are extremely important because companies learn what their customers like and
dislike about their products and services. Primary research involves collecting original data
about the preferences, buying habits, opinions, and attitudes of current or prospective
customers. This data can be gathered in focus groups, surveys, and field tests. Secondary
researchis basedon existingdata from reference books, magazines and newspapers, industry
publications, chambers of commerce, government agencies, or trade associations. It yields
informationabout industry sales trends and growth rates, demographic profiles, and regional
business statistics.
Customer satisfaction is a concept that more and more companies are putting at the
heart of their strategy, but for this to be successful, they’re needs to be clarity about what
customer satisfaction means and what needs to happen to drive improvement.
NEED FOR STUDY
Increasing competition, ever growing market, easy availability of the finances and
increasing population of young executives, with huge disposable incomes, over the past few
years has substantially increased the sales in the automobile industry. Also, the competition
among the dealers of the products has increasedwith each trying to maximize their customer
base. This makes it imperative for the dealers to provide the best of the services and exceed
the customer expectations to achieve customer delight and loyalty.
The study tries to understand the key service parameters and reflect upon the
dysfunctional areas, thus providing the dealer with an insight into the level of customer
satisfaction and changing trends of the customer expectations.

OBJECTIVE OF THE STUDY
To study and understand the key service parameters using Customer Satisfaction and
reflect upon the low performing areas:
 To study about the customer satisfaction on the services provided by the dealers.
 To study the opinion of the owners of cars regarding its features like mileage, price
etc.
 To study the effect of advertisement on the customers to promote the product.
 To study the customer satisfaction with usage of their cars.
 To study the informationresources that the customer using before purchasing the car.
SCOPE OF THE STUDY
 The research measures the experiences of customers.
 Defines and analyses the experiences based on key deliverables.
 Gains insights into Customer expectations.

LIMITATIONS
The study is restricted in scope of owing to the following limitations:
 Due to constraint of time onlycity of Solapur is selectedandso it cannot claim to be a
comprehensive study of the population.
 The sample size is restricted to 50 respondents.
RESEARCH METHODOLOGY
 Preliminary stage of study- a pilot survey, personal interview of sales
consultants, potential customers andexisting customer was conducted to arrive at key
deliverables which would ensure customer satisfaction. The research tool
(questionnaire) was designed by inducing the various queries, based on the key
deliverables, which would reflect the customer satisfaction.
 The research was based on a study of a sample, sized 50, using simple random
sample selected from the existing database of Ford. The research included collection
of data from the primary sources using the research tool (questionnaire). Final stage
was to analyze, interpret and draw conclusions from the data collected.
Date Sources:
 PrimaryData:
The data is collecteddirectlyfrom eachand every customer.
 Pilot Survey
A pilot survey was conductedto understand the factors, which would positively
influence the customer. Personal Interviews were conductedfor the sales team, potential

customers andthe existingcustomersof Ford. The factors scoringhigh in the interviews
were consideredto be the key deliverables.
 Survey Research:
The researchwas done to learnabout people’s preferences andsatisfactionof the
Ford customer.
ResearchTool:
 Questionnaire
Interview through questionnaire methodwas employedfor the research
purpose. The questionnaires were individually administeredto eachcustomer to ensure
minimum scope for faultydata entryand error of understanding. This methodalso gave
the interviewer the scope of enteringinto a dialogue and understanding the customer’s
perceptionbetter.
The questionnaire triedto capture the responses of the customers mainlyonthe
key deliverables, derived from the pilot survey conducted, and a few questions have been
included to gauge the level of satisfactionand to gain insight into customer expectations.
 Unstructuredinterview
The interview complementedthe primaryresearchtool andhelped deliver
into details of responses providedby the customers. This not only validated the responses
of the customersbut also helped the interviewer understand the expectations of the
customers.

Sampling Unit: Inthis study the sampling unit usedis the existingcustomer base of
Ford. Selectionis made from the list of Customers duringthe last one year.
Sampling Size: Sample size was chosento be 50.
Sampling Procedure: Simple Random Sampling.
In simple random sampling, each member of the target populationhas the
same chance of being selectedfor participationinthe study. For a sample to trulybe a
simple random sample we needto developa list or sampling frame that includes almost
all of the population, then from this we randomly pull names from the sampling frame
using some kind of random methodsuch as a random number table or a random number
generator. Finally, numbers are assigned to all members of the populationand pull the
names of those members whose numbers are pulled from the table or generator.
The biggest advantage to a simple random sample is that we get a prettygood
unbiased sample fairlyeasily. The biggest downside is that we may not get all elements
of the populationthat are of interest.

CHAPTER-II
INDUSTRY PROFILE AND COMPANY PROFILE
INTRODUCTION ABOUT THE INDUSTRY
Automobile Industry History
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the
first automobile to runon roads. This automobile, infact, was a self-powered, three-wheeled,
military tractor that made the use of a steam engine. The range of the automobile, however,
was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition,
these automobiles were not fit for the roads as the steam engines made them very heavy and
large, and required ample starting time.
The Automobile Industry came of age with Henry Ford in 1914 for the bulk production of
cars. This lead to the development of the industry and it first begun in the assembly lines of
his car factory. The several methods adopted by Ford, made the new invention (that is, the
car) popular amongst the rich as well as the masses.
According the History of Automobile Industry US, dominated the automobile
markets around the globe with no notable competitors. However, after the end of the Second
WorldWar in 1945, the Automobile Industry of other technologically advanced nations such
as Japan and certain European nations gained momentum and within a very short period,
beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign
automobile companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry reveal that in the developed
countries the Automobile Industries are stagnating as a result of the drooping car markets,
whereas the Automobile Industry in the developing nations, such as, India and Brazil, have
been consistently registering higher growth rates every passing year for their flourishing

domestic automobile markets.
The World Automobile Industry is turned to the developing markets.
With the developed markets almost saturated, the World Automobile Industry is
now focusedonthe developing markets of South America and Asia, and EasternEurope with
special emphasis on BRIC (Brazil, Russia, India, and China).
As per the reports of the International Organization of Motor Vehicle Manufacturers or
OICA(the association of the companies involved in World Automobile Industry), for the
fiscal end in 2010, the automobile manufacturers in the U.S. have been overtaken by those in
Japan, in terms of the total volume of automobile units manufactured worldwide.
Measures to be adopted by global leaders of the World Automobile Industry.
Several significant economic measures are being considered by the major players of
the World Automobile Industry in order to make a smooth entry into the markets of the
developing countries, and to make a name for themselves. The effective measures include:
 Reducing the selling prices of the automobiles manufactured in their factories
 Improving the levels of after-sales services to keep customers satisfied
 Opening manufacturing factories in the developing nations, to reduce effective costs
of production as well as saving shipping charges, and enhancing prompt delivery of
automobile units.
Automobile Industry Trends
In keeping with the Automobile Industry Trends, the leading automobile
manufacturers are turning to the Asian markets that appear set to grow immensely over the
next decade. The automobile markets in the U.S., Europe and the Japan have almost matured
as a result of saturation and appear set to decline through the next decade. In contrast, the

automobile markets spread over the entire Asian continent (with the exception of Japan), are
constantly increasing in size and will be the destination for most of the globally leading
automobile manufacturers.
The Automobile Industry Trends reveal that the emerging markets of the
developing nations of Asia especially China, and India are backed by their huge population
growth rate, to add to the growing national economy of these two nations.
The rapid growth of the national economy of the BRIC countries (including Brazil,
Russia, India, and China) has enabled a growing section of the population of these countries
to purchase automobiles. Global surveys conducted recently reveal that within the next ten
years, these emerging automobile markets will account for nearly a whopping 90 percent of
the global automobile sales growth. As a result of this, leading Automobile manufacturers of
the world are setting up factories in the emerging markets, in order to serve the potential
consumers better as well as reduce manufacturing and shipping costs. In addition, these
arrangements are enabling the leading global automobile manufacturers to compete with the
local automobile manufacturers, which were flourishing in the absence of quality
competition.
The Emerging Indian Automobile Market
The Indian Automobile Market is a promising industrial sector that is growing
immensely every passing year. The passenger cars are referred to, through the use of the
word "automobile." The whooping growth experienced by the Indian Automobile Market in
the last financial year itself that is the financial year end in February, 2011 was very close to
a 38 percent over the previous fiscal. This statistical fact is a glittering example of the
potential of the growing Automobile Industry in India.
As per the survey conducted by the Society of Indian Automobile Manufacturers,
the total number of automobiles manufactured by the Automobile Industry in India,
throughout the financial year 2010-11, was very close to the 35.5 lakh (3.5 million) margin.

The huge of number of automobiles manufactured by the Automobile Industry in India was
an enormous growth upon the number of automobiles manufactured during the previous
fiscal that ended in 2010.
The total number of cars that were exportedfrom India was very close to the 5.0 lakh
(5.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in India.
The export of cars manufactured in India comprisednearly 33 percent of the total number of
cars manufactured domestically by the Automobile Industry in India.
The India Automobile Market looks set to prosper, largelydue to the growing market
for automobiles that is developing in India. In the financial year that ended in February,
2009, the Indian automobile markets were the fastest growing in the world, with the
registered growth rate touching nearly 20 percent. The Automobile Industry in India
mainly comprises of the small car section, which enjoys nearly a 2/3rd market share of the
entire market for automobiles in India. In this respect, the Indian markets are the largest in
the world for small cars, behind Japan.
The Indian passenger car market which ranks amongst the largest in the world, is
poisedto become even larger and enter the top five passenger car markets in the world in the
next decade.
India Automobile Industry
Following India's growing openness, the arrival of new and existing models, easy availability
of finance at relatively low rate of interest and price discounts offered by the dealers and
manufacturers all have stirred the demand for vehicles and a strong growth of the Indian
automobile industry. The data obtainedfrom ministryof commerceand industry, shows
high growth obtained since 2001- 02 in automobile production continuing in the first three
quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the
growth rate in 2003-04 was 15.1 per cent the automobile industry grew at a compound
annual growth rate (CAGR) of 22 per cent between 1992 and 1997.
With investment exceeding Rs. 50,000 crore, the turnover of the automobile
industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component

sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is
estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.
Major Manufacturers in Automobile Industry
 Maruti Udyog Ltd.
 General Motors India
 Ford India Ltd.
 Eicher Motors
 Bajaj Auto
 Daewoo Motors India
 Hero Motors
 Hindustan Motors
 Mahindra Motors
 Hyundai Motor India Ltd.
 Royal Enfield Motors
 Telco
 TVS Motors
 DC Designs
 Swaraj Mazda Ltd
Government has liberalizedthe norms for foreigninvestment and import of technology
and that appears to have benefited the automobile sector. The production of total vehicles
increased from 4.2 million in 2005-06 to 7.3 million in 2006-07.

The industry has adopted the global standards and this was manifested in the
increasing exports of the sector. After a temporary slump during 2007- 2008 , such exports
registered robust growth rates of well over 50 per cent in 2008-09 and 2009-10 each to
exceed two and- a-half times the export figure for 2011-12.
Automobile Export Numbers
THE KEY FACTORS BEHIND THIS UPSWING
Sales incentives, introductionof new models as well as variants coupledwith easy
availability of low cost finance with comfortable repayment options continuedto drive
demand and sales of automobiles duringthe first two quarters of the current year. The riskof
an increase inthe interest rates, the impact of delayed monsoons onrural demand, and
increase inthe costs of inputs such as steel are the key concerns for the players inthe
industry.
As the players continue to introduce newmodels and variants, the competitionmay
intensifyfurther. The ability of the players to containcosts and focus onexports will be
critical for the performance of their respective companies.
The auto component sectorhas also postedsignificant growthof 20 per cent in 2009-
10, to achieve a sales turnover of Rs.30,640 crore(US$ 6.7 billion). Further, there is a
potential for higher growth due to outsourcingactivities byglobal automobiles giants. Today,
this sector has emergedas another sunrise sector.
2.2 COMPANY PROFILE
Ford Motor Company designs, develops, manufactures, and services cars and
trucks worldwide. It operates in two sectors, Automotive and Financial Services. The
Automotive sector sells vehicles under Ford, Mercury, Lincoln, and Volvo brand names.
This sector markets cars, trucks, and parts through retail dealers in North America, and
through distributors and dealers outside of North America. It also sells cars and trucks to
dealers for sale to fleet customers, including daily rental car companies, commercial fleet

customers, leasing companies, and governments. In addition, this sector provides retail
customers with a range of after-the-sale vehicle services and products in areas, such as
maintenance and light repair, heavy repair, collision, vehicle accessories, and extended
service warranty under the Genuine Ford, Lincoln-Mercury Parts and Service, Ford Custom
Accessories, Ford Extended Service Plan, and Motor craft brand names. The Financial
Services sector offers various automotive financing products to and through automotive
dealers. It offers retail financing, which includes purchasing retail installment sale contracts
and retail lease contracts from dealers, and financing to commercial customers to purchase or
lease vehicle fleets; wholesale financing that comprises making loans to dealers to finance
the purchase of vehicle inventory; and other financing, which consists of making loans to
dealers for working capital, improvements to dealershipfacilities, and to purchase or finance
dealership real estate. This sector also services the finance receivables and leases that it
originates and purchases, makes loans to its affiliates, purchases receivables, and provides
insurance services related to its financing programs. Ford Motor Company was founded in
1903 and is based in Dearborn, Michigan.
Henry Ford and Family
The story of Henry Ford is not of a prodigy entrepreneur or an overnight success.
Ford grew up on a farm and might have easily have remained in agriculture. But something
stronger pulled at Ford’s imagination, mechanics, and machinery, understanding how things
worked and what new possibilities lay in store. As a young boy, he took apart everything he
got his hands on. He quickly became known around the neighborhood for fixing people’s
watches. In 1896, Fordinvented the Quadricycle . It was the first “horseless carriage” that he
actually built. Its a far cry from today’s cars and even from what he produced a few years
later, but in a way it was the starting point of Ford’s career as a businessman. Until the
Quadricycle, Ford’s tinkering was experimental, theoretical-like the gas engine he built on
his kitchen table in the 1890’s, which was just an engine with nothing to power. The
Quadricycle showed enough potential that it launched the beginning of Ford’s business
ventures.

Ideas into Business
Ford Motor Company was founded on June 16, 1903.The first Ford, the model A,
was being sold in Detroit a few months later. When founded the Ford Motor Company was
just one of 15 car manufacturers in Michgan and 88 in the US. But as it began to turn a profit
within its first few months,it became clear that Henry Ford’s vision for the automotive
industry was going to work and work in a big way. During the first five years of Ford Motor
Company’s existence, Henry Ford, as chief engineer and later as president, directed a
development and production program that started in a converted wagon shop.
Henry Ford’s insistence that the company’s future lay in the production of
affordable cars for a mass market caused increasing friction between him and the other
investors. As some left, Ford acquired enough stock to increase its own holdings to 58.5
percent. Henry Ford became president in 1906, replacing John.S.Gray,a Detroit banker who
had served as the company’s first president.
Ford Family through the Years
The years between the world wars were a period of hectic expansion. In 1917,
Ford Motor Company began producing trucks and tractors. In 1919,a conflict with
stockholders over the millions to be spent building the giant Rouge manufacturing complex
in Dearborn, Michigan led to the company becoming wholly owned by Henry Ford and his
son, Edsel, who then succeeded his father as president. After Edsel Ford passed away in
1943,a saddened Henry Ford resumed the presidency.
Henry Ford resigned for the second time at the end of World War II. His eldest
grandson, Henry Ford II, became president on Sept 21,1945.Even as Henry Ford II drove the
industry’s first postwar car off the assembly line, he was making plans to reorganize and
decentralize the company to resume its prewar position as a major force in a fiercely
competitive auto industry.
Henry Ford II provided strong leadership for Ford Motor Company from the
postwar erainto the 1980s.He was president from 1945until 1960 andchief executive officer

from 1945 until 1979.He was chairman of the board of directors from 1960 until 1980 and
removed as chairman of the finance committeefrom 1980 until his death in 1987.Now,at the
beginning of its second century,another Ford family member has been named CEO of Ford
Motor Company, the first familymember to holdthe positioninmore than 20 years. Like his
uncle, Henry Ford I, William Clay Ford Jr.(great grandson of Henry Ford) leads a company
where “family” has a much broader meaning, referring to far more than just those with the
last name “Ford”. Today, the Ford family comprises of employees, dealers, suppliers,
shareholders, customers and more-all those who help fulfill the vision Bill Ford has defined
for the company: to create great products that benefit customers, shareholders and society.
HISTORY
The Dream Becomes A Business
Ford Motor Company entered the business world on June 16,1903, when Henry
Ford and 11 business associates signed the signed the company’s articles of incorporation.
With $28,000 in cash, the pioneering industrialists gave birth to what was to become one of
the world’s largest corporations. Fewcompanies are as closelyidentifiedwiththe history and
development of industry and society throughout the 20th century as Ford Motor Company.
As with most great enterprises, Ford Motor Company’s beginnings were modest.
The company had anxious moments in its infancy. The earliest record of a shipment is July
20, 1903, approximately one month after incorporation, to a Detroit physician. With the
company’s first sale came hope –a young Ford Motor Company had taken its first steps.
Mass Production On The Line
Perhaps Ford Motor Company’s single greatest contribution to automotive
manufacturing was the moving assembly line. First implemented at the Highland Part plant
(in Michigan, US) in 1913, the new technique allowed individual workers to stay in one
place and perform the same tasks repeatedly on multiple vehicles that passed them. The

proved tremendouslyefficient, helpingthe company far surpass the productionlevels of their
competitors-and making the vehicles more affordable.
The First Vehicles
Henry Ford insisted that the company’s future lay in the production of affordable
cars for a mass market. Beginning in 1903, the company began using the first 19 letters of
the alphabet to name new cars. In 1908, the Model T was born.19 years and 15 million
Model T’s later, Ford Motor Company was a giant industrial complexthat spanned the globe.
In 1925, Ford Motor Company acquired the Lincoln Motor Company, thus branching out
into luxury cars, and in the 1930’s, the Mercury division was created to establish a division
centered on mid-priced cars. Ford Motor Company was growing.
Becoming a Global Company
In the 50’s came the Thunderbird and the chance to own a part of Ford Motor
Company. The company went public and, on Feb 24, 1959, had about 350,000 new
stockholders. Henry Ford II’s keen perception of political and economic trends in the 50’s
led to the global expansion of FMC in the 60’s, and the establishment of Ford of Europe in
1967, 20 years ahead of the European Economic Community’s arrival. The company
establishedits NorthAmericanAutomotive Operations in 1971, consolidating U.S, Canadian
and Mexican operations more than two decades ahead of the North American Free Trade
Agreement.
Ford Motor Company startedthe last century with a single man envisioning products
that would meet the needs of people in a world on the verge of high gear industrialization.
Today, Ford Motor Company is a family of automotive brands consisting of: Ford, Lincoln,
Mercury, Mazda, Jaguar, Land Rover, Aston Martin and Volvo. The company is beginning
its secondcenturyof existence with a worldwide organization that retains and expands Henry

Ford’s heritage by developing products that serve the varying and ever changing needs of
people in the global community.
OVERVIEW
Their Vision
To become the world’s leading Consumer Company for automotive products and
services.
Their Mission
We are a global family with a proud heritage passionately committed to providing
personal mobility for people around the world.
We anticipate consumer need and deliver outstanding products and services that
improve people’s lives.
Their Values
Our business is driven by their consumer focus, creativity, resourcefulness, and
entrepreneurial spirit.
We are an inspired, diverse team. We respect and value everyone’s contribution. The
health and safety of our people are paramount.
We are a leader in environmental responsibility. Our integrityis never compromised
and they make a positive contribution to society.
We constantly strive to improve in everything they do. Guided by these values, we
provide superior returns to their shareholders.

FORD
Genuine, Progressive, Smart
Ford Motor Company offers reliable, affordable vehicles for the world’s varying
lifestyles. From the Model T-the car that first brought driving to the masses, to more recent
favorite like the Escape, Ford vehicles have been among the world’s most popular cars and
trucks.
Major Competitors
Daimler Chrysler, Fiat, General Motors, Honda, Nissan, Toyota, Volkswagen, Hyundai
FORD INDIA PRIVATE LIMITED
Ford India Private Limited is a wholly owned subsidiary of the Ford Motor
Company in India. Ford India Private Limited's head quarters are located in Chengalpattu,
Tamil Nadu. It currently is the 8th largest car maker in India after Maruti Suzuki, Hyundai,
Tata Motors, Mahindra, Chevrolet, Honda and Toyota.
The modern Ford India Private Limited began production in 1996, although the
roots trace back to 1907 when the Model A was launched. Its manufacturing facilities are in
Maraimalai Nagar near Chennai. Ford India Private Limited began production in 1926, but
was shut down in 1954. Production began again with the joint venture Mahindra Ford India
Limited(MFIL) in October 1995, a 50-50 venture with Mahindra & Mahindra Limited. Ford
Motor Company increasedits interest to 72% inMarch 1998 and renamed the company Ford
India Private Limited. FIPL's main manufacturing plant had a capacity of 100,000 vehicles
annually and is located in Maraimalai Nagar, 45 kms. From Chennai. As its new hatchback
Figo was launhced in March 2010, Ford Motor Company had invested $500 million to
double capacity of the plant to 200,000 vehicles and 250,000 engines annually.
Current Models
1. Ford Ikon – launched in 1999

2. Ford Endeavor – launched in 2004
3. Ford Fiesta – launched in 2005
4. Ford Figo – launched in 2010
5. Ford Fiesto – launched in 2012
6. Ford Ecosport – launched in 2013
Discontinued Models
1. Ford Escort (1996 -2000)
2. Ford Mondeo(2001 – 2005)
3. Ford Fusion(2004-2010)
Service Network
As of June 2010, FIPL has 168 dealerships in 97 cities across India . The company
plans to expand to 200 dealerships by the end of 2010.
Sales Performance
FIPL posted tremendous record sale, witnessing a 272 per cent growth in year-on
year sales for the month of May when compared to May 2009. Ford Figo continued to drive
record sales for Ford India for the third consecutive month since its launch in the Indian
market.
Ford India also saw an increase inits month-on-monthsales with May posting higher
sales than April, achieving a 7.6 per cent high against last month's sale of 7509 units. Other
Ford brands also saw a rise in demands which added to the overall volume for May with all
the brands performing well. Ford India will commence its second production shift at its
manufacturing plant in Maramalainagar from July, with training of new employees already
underway, to meet strong demands for its products especially the Figo

Exports
FIPL currently exports vehicles in small quantity to countries in South America and
Africa.

To Study Consumer Satisfaction towards Ford Cars in Solapur City

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